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Some Spatial Equilibria In Facility Investment Under Uncertain Demand

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  • John Roy
  • Börje Johansson
  • Giorgio Leonardi

Abstract

ABSTRACT This paper describes the spatial distribution of customer demand, supply of customer services and facility investment, as the outcome of a three‐level game‐like interaction between customers (e.g., shoppers), suppliers (e.g., retailers) and developers (e.g., landlords). Treating both the suppliers and developers at each centre as competitors, oligopolistic equilibria of the Nash‐Stackelberg type are developed, and conditions for their existence and uniqueness established. Uncertain customer demand is specified in probabilistic terms, representing the suppliers' perception of expected customer behaviour.

Suggested Citation

  • John Roy & Börje Johansson & Giorgio Leonardi, 1985. "Some Spatial Equilibria In Facility Investment Under Uncertain Demand," Papers in Regional Science, Wiley Blackwell, vol. 56(1), pages 215-228, January.
  • Handle: RePEc:bla:presci:v:56:y:1985:i:1:p:215-228
    DOI: 10.1111/j.1435-5597.1985.tb00849.x
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